While coal mines are being shuttered in the east, there’s a new mine being proposed for Wyoming. The company Ramaco has submitted an application for a mining permit to the Department of Environmental Quality. The mine would be just north of Sheridan and would produce up to 8 million tons of coal a year. Ramaco CEO Randall Atkins says he expects the mine to be profitable despite tough market conditions in part because it’s on private land, unlike most of the region’s coal mines.
“Therefore we have no royalties and no bonus payments," he said. "So that’s a significant advantage to us.”
Atkins also pointed to Wyoming’s favorable severance taxes for coal, which are half what they are in Montana. The company expects the permitting process for the mine to take roughly a year. Ramaco is still in the process of negotiating contracts with domestic utilities for the coal. In an investor presentation, it said exporting to Asia will also be considered.